Online portal for baby products and toys, FirstCry.com is reportedly in talks for raising equity financing of about $100 million. The reports suggests that the lead investor is Temasek Holdings — a state-owned holding company.
However, neither FirstCry and Temasek have confirmed this news yet. Along with Temasek, the company is also in talks with other investors — whose names have not been revealed.
According to the sources, the company has confirmed that FirstCry’s parent company Brainbees Solutions is hoping to be valued at $400-500 million after this funding round goes through. The company was estimated at $300-350 million when it last raised funding in October last year.
The sources further revealed that the investment is most likely to include secondary transactions to purchase stockholdings in the 2010 founded firm from its existing investors.
Firstcry is an online shopping store which offers a range of baby care products and toys. The company claims to have over 20000+ items from 250+ top International and Indian brands like Mattel, Ben10, Pigeon, Funskool, Hotwheels, Nuby, Farlin, Medela, Pampers, Disney, Barbie, Gerber, Zapak, Mee Mee and so on.
FirstCry has risen as a market leader in the Indian online baby products retail segment, especially after the company acquired Mahindra Retail for a whopping ₹362 crore last year in a deal that garnered a lot of publicity.
When the Mahindra Retail deal was being executed last year, the company had raised ₹226 crore in funding from Switzerland’s Adveq and Mahindra Group, along with existing investors IDG Ventures India, SAIF Partners, New Enterprise Associates and Vertex Ventures. Overall, the company has raised about $125 million in funding so far.
For the uninitiated, Mahindra Retail, which was a subsidiary of conglomerate Mahindra Group, was the owner of Babyoye brand. It was, at that time, FirstCry’s closest competition in the market.
Temasek is an investment company headquartered in Singapore with a multinational staff of 630 people and a portfolio of $275 billion globally. In the past, the company has backed online marketplace Snapdeal, automobile classified portal CarTrade, and online insurance aggregator PolicyBazaar, among other companies.